DISTRICT OF OAK BAY SECONDARY SUITES

Draft Strategy December 2020

312 – 645 Fort Street Victoria, BC V8W 1G2 T: 250.220.7060

Project # 2878.0008.01

This report is prepared for the use of the District of Oak Bay. No representations of any kind are made by Urban Systems Ltd. or its employees to any party with whom Urban Systems Ltd. does not have a contract. © 2020 URBANSYSTEMS®

District of Oak Bay Secondary Suites Study

Draft Strategy

December 2020

Project # 2878.0008.01

Contact: Dan Huang, RPP, MCIP Senior Planner / Principal URBAN SYSTEMS 312 – 645 Fort Street Victoria, BC V8W 1G2 T: 250.220.7060 E : [email protected] W: www.urbansystems.ca

District of Oak Bay Secondary Suites Study

TABLE OF CONTENTS

1 STUDY OVERVIEW ...... 1 1.1 Introduction ...... 1 1.2 Document Structure ...... 1 2 COMMUNITY CONTEXT ...... 3 3 BACKGROUND REVIEW ...... 6 3.1 Policy Context and History ...... 6 4 COMMUNITY COMPARISON ...... 15 4.1 Policies in Neighbouring and Comparable Communities ...... 15 5 REGULATORY CONSIDERATIONS ...... 22 5.1 Zoning Bylaw ...... 22 5.2 Parking Regulations ...... 24 5.3 BC Code ...... 25 5.4 Registration and Licensing ...... 26 5.5 Enforcement ...... 27 5.6 Services and Infrastructure ...... 28 5.7 Other Considerations ...... 30 6 COMMUNITY ENGAGEMENT ...... 31 6.1 Overview ...... 31 6.2 Key Issues ...... 31 6.3 Community Survey Summary ...... 32 6.4 Community Open ...... 46 6.5 Pop-Up Booths ...... 50 6.6 Interviews with Postsecondary Institutions ...... 50 7 OPTIONS FOR CONSIDERATION ...... 52 7.1 The Attributes of Secondary Suites ...... 52 7.2 Sample Scenarios for Regulating Secondary Suites ...... 54 8 NEXT STEPS ...... 58

Draft Strategy – December 2020 District of Oak Bay Secondary Suites Study

1 STUDY OVERVIEW 1.1 Introduction The provision of secondary suites in a community can serve an important role in the housing spectrum, offering a relatively affordable housing option for renters as well as potential additional income for homeowners. As demand for housing in the Capital Regional District (CRD) intensified and the rental vacancy rate decreased, the number of secondary suites in Oak Bay appears to have grown. Based on information from BC Assessment and the Oak Bay Housing Needs Report, it is estimated that there are between 500 and 750 secondary suites within the community, although the exact figure is difficult to verify.

Currently, the District of Oak Bay does not have a regulatory framework to manage secondary suites, and as such most suites in Oak Bay are unregulated. During the development of the 2014 Official Community Plan, a community survey found that 78 percent of respondents felt that secondary suites should be permitted and regulated, with standards put in place to address issues such as health and safety, parking and owner occupancy. As such, OCP Housing Policy #10 sets the following direction regarding secondary suites:

Develop a policy and regulatory framework to permit secondary suites as a way of providing affordable housing in the community.

This Secondary Suites Study serves to fulfill this OCP policy direction on affordable housing, as well as supports a number of other municipal policy objectives. With respect to climate action objectives, secondary suites provide additional housing units whilst minimizing the increased ecological footprint in the community. With respect to social inclusion and generational equity objectives, secondary suites help contribute to “aging in place”, providing homeowners a potential opportunity to stay in their longer, or care for an aging parent whilst providing them their own separate dwelling unit which respects their independence.

It should be noted that the context of this study focuses on considering secondary suites within a primary residential dwelling. At this time, the study does not address suites within an accessary building (e.g. suite above a detached ) or other types of infill dwellings (e.g. garden suites, laneway housing).

1.2 Document Structure This document reports on the study process to date (beginning in 2018) including background research, policy review, and community engagement. The remainder of the document is structured as follows:

• Chapter 2 – Community Context provides an overview of Oak Bay demographics and the housing context. • Chapter 3 – Background Review provides a summary review of relevant municipal plans and policies.

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• Chapter 4 – Community Comparison provides research on comparable communities that was undertaken to understand how other municipalities in BC are regulating secondary suites. • Chapter 5 – Regulatory Considerations outlines the key policy and regulatory issues identified through this study and introduces a number of considerations as part of a potential regulatory framework.

• Chapter 6 – Community Engagement provides a summary of findings through the public engagement process including open houses, pop-up booths at community events, and a District- wide survey. • Chapter 7 – Options for Consideration provides and overview of regulatory attributes and presents initial options for review and consideration by the community and Oak Bay Council.

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2 COMMUNITY CONTEXT The information presented in this section is drawn from Statistics Canada data (2001 to 2016) as well as the recent Oak Bay Housing Report (February 2020). Census data from 2011 is supplemented with information from the National Household Survey, which replaced the long-form census for that year.

2.1.1 Population, Age, and Household Size The overall population of Oak Bay has remained stable for many years. Between 2001 and 2016, the community grew by 1.7 percent, compared to 17.7 percent across the Capital Regional District (CRD) during that same timeframe.

Table 1 – Population Change in Oak Bay, 2001 to 2016

2001 2006 2011 2016

Oak Bay population 17,798 17,908 18,015 18,094

Population change -- 0.6% 0.6% 0.4%

CRD Population Change -- 6.0% 4.3% 6.5%

Source: Statistics Canada, Census, 2001, 2006, 2011, 2016.

Over this time period, the demographic population of Oak Bay is getting older, which is consistent with the general aging trend seen in most communities across Canada. In 2006, the median age in the District of Oak Bay was 49.9 years, and this rose to 53.6 years in 2016. By comparison, the 2016 median age across the CRD was 45.5, a difference of 8.1 years.

The average household size in Oak Bay has remained relatively consistent, at 2.2 persons in 2006 and rising slightly to 2.3 persons in 2016.

2.1.2 Occupied Dwellings In 2016, there were 8,122 private dwellings in Oak Bay which is a decline of 1.9 percent from 2006 when there were 8,280 dwellings. Of those, 63.3% of private dwellings are comprised of single-detached housing. Ninety-five percent of private dwellings are occupied permanently, and this has remained consistent between census periods.

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Table 2 – Dwelling Types in Oak Bay, 2016

Type of Dwelling Percentage of Total

Single-detached house 63.3%

Apartment – fewer than five storeys 22.3%

Apartment – five or more storeys 4.0%

Apartment or flat in a 7.4%

Row house 1.5%

Semi-detached house 1.4%

Other single-attached house 0.1%

Source: Statistics Canada, Census, 2016.

2.1.3 Tenure Renters make up approximately a quarter of the residents in Oak Bay. Between 2006 and 2016, the percentage of owners increased slightly and the percentage of renters decreased slightly. For comparison purposes, in 2016 overall housing tenure in the CRD was comprised of 63 percent owners and 37 percent renters (a difference of 13 percentage points).

Table 3 – Tenure of Households in Oak Bay, 2016

Occupant 2006 2011 2016

Owner 73.6% 75.8% 76.3%

Renter 26.5% 24.3% 23.7%

Source: Statistics Canada, Census, 2006, 2011, 2016.

Additional information and details can be found in the Oak Bay Housing Needs Reports, which is summarized in Section 3 of this report.

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2.1.4 Monthly Shelter Costs Median monthly shelter costs have risen rapidly for both owned and rented dwelling units, though significantly faster for owned dwellings. This is reflective of the overall trend in ownership costs throughout the CRD.

Table 4 – Median Monthly Shelter Costs in Oak Bay, 2006 to 2016

Median Monthly Shelter Costs 2006 2011 2016 Change Between 2006 and 2016

Owned Dwellings $684 $771 $918 34.2%

Rented Dwellings $808 $906 $982 21.5%

Source: Statistics Canada, Census, 2006, 2011, 2016.

While home ownership costs have risen over the years, homeowners in Oak Bay generally have higher incomes relative to renters. With respect to housing affordability, in 2016 approximately 14 percent of owners in Oak Bay reported that they were spending 30% or more of their income on shelter costs1. This is compared to 50 percent of renters spending over this monthly affordability target.

1 Oak Bay defines affordable housing as housing that costs no more than 30% of gross household income.

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3 BACKGROUND REVIEW This chapter summarizes the background review of existing Oak Bay policies, bylaws, and other documents. As previously noted, currently the District of Oak Bay does not generally allow secondary suites in any type of dwelling. There are some cases of legal secondary suites that have been “grandfathered” through agreements between the municipality and homeowners, although this is not common. Existing secondary suites are therefore largely unregulated, meaning that with secondary suites do not conform with the Zoning Bylaw, and they have not undergone building inspection or received a formal building permit.

3.1 Policy Context and History As part of the Secondary Suites Study, the following plans and policies were reviewed to identify any pertinent information or regulations relating to secondary suites:

• Official Community Plan (OCP) Bylaw No. 4620

• Oak Bay Housing Needs Report

• Zoning Bylaw No. 3531

• Parking Bylaw No. 3540

• Subdivision and Development Bylaw No. 3578

• Secondary Suites Review Committee Report

• Urban Forest Management Strategy

• Tree Protection Bylaw No. 4742

3.1.1 Official Community Plan Bylaw No. 4620 The 2014 Official Community Plan identifies the following housing goals: providing housing options to reflect the changing needs of the community; retaining neighborhood character; attracting more people and diversity; and lowering average housing costs. The OCP also includes a Regional Context Statement (as required by legislation) which supports compact urban settlements, noting that secondary suites are an important component within the housing spectrum.

The OCP acknowledges that the availability of safe, affordable, and inclusive housing is decreasing and identifies a need for action and policy on affordable and inclusive2 housing. There is also recognition that

2 Inclusive housing is defined as housing that supports the specific needs of seniors and / or those with developmental or physical disabilities.

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existing unregulated secondary suites (as well as multi-unit ) are important contributors to the affordable housing stock.

Unregulated secondary suites are mentioned a number of times in the OCP. The following challenges with unregulated secondary suites were identified:

• There is a concern over the potential impact on water and other infrastructure and access for firefighting.

• Residents perceive parking congestion on streets with unregulated secondary suites.

• The absence of regulation means that many suites do not meet safety standards.

• Secondary suites only meet the needs of renter households and many people (e.g., older adults) do not find suites suitable for their needs 3 A 2013 OCP survey found that a majority of Oak Bay residents agreed with introducing some form of secondary suite regulation. The following benefits of regulating secondary suites are noted in the document, and include the following:

• increasing the safety of units; • capturing income for the municipality to cover regulation costs; • having a better ability to address issues that arise with secondary suites; and • allowing an increase in units without changing the basic form or streetscape of established neighbourhoods. Several of the OCP’s housing objectives pertain to the secondary suites study as outlined in the following table:

3 The OCP also notes that some unregulated secondary suites in Oak Bay are in detached garages, “effectively making them laneway or infill houses”, and that there are concerns about the impact of infill houses on vegetation and trees (pg. 74). This is noted here but as this study is limited to secondary suites within the same building as the primary unit, the impacts of infill housing will not be addressed.

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Table 5 – OCP Housing Objectives related to Secondary Suites

Relevant OCP Housing Objectives Role of Secondary Suites 4

Support a modest expansion of housing Secondary suites can support a modest increase in housing within Oak Bay while addressing while maintaining neighbourhood character. Clear regulations concerns such as tree protection, can address potential concerns around tree protection, parking, traffic, noise, effects on other parking, traffic, noise, and effects on other properties. properties, and neighbourhood character.

Develop new housing that integrates with the character of existing neighbourhoods.

Encourage and support more diverse Secondary suites create more housing options in lower density housing options that respond to needs neighbourhoods and provide opportunities for renters to live as they change over time, including close to schools and other amenities that are often located in affordable and inclusive housing. these neighbourhoods. They also offer a ground-oriented housing option for renters.

Support the development of housing Secondary suites allow homeowners to adapt their homes forms that can be adapted to the over time. For example, new homeowners may use a changing needs of a household over its secondary suite as a mortgage helper, but later use the suite lifespan. to house an aging family member. Secondary suites can also make it easier for older adults to age in place by providing an additional source of income during retirement.

Reduce the number of unregulated Permitting and regulating secondary suites creates an residential units and increase the range opportunity for homeowners to build units that are in of regulated housing options in compliance with the Zoning Bylaw and Building Code. With a established neighbourhoods. regulatory framework in place, a municipality can more effectively resource and implement enforcement.

Improve the safety of housing by increasing the number of residential units that comply with building code requirements.

4 Information drawn from Government of British Columbia, Secondary Suites: A Guide for Local Governments, 2005.

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As previously noted, the OCP contains the following policy which provides direction and guidance to this Secondary Suites Study:

H10 – Develop a policy and regulatory framework to permit secondary suites as a way of providing affordable housing in the community, pursuant to section 877 (2) of the Local Government Act, subject to the requirements of the BC Building Code, recognizing that this will be a process requiring time and community engagement. Undertake the following tasks:

• Work with the community to identify criteria for the regulation of secondary suites in Oak Bay • Conduct an analysis to identify revenues, costs, and resources required to regulate secondary suites • Consider a pilot study of secondary suite regulation in a defined area • Amend the Zoning Bylaw to permit new homes to include secondary suites, where applicable, once secondary suites are regulated.

3.1.2 Housing Needs Report In 2019, the District of Oak Bay undertook research and development of a Housing Needs Report (HNR), which was completed in February 2020. Funding for the study was provided by the Province of British Columbia, which requires all municipalities and regional districts in BC to complete a housing needs report by April 2022 and every five years thereafter. The following figures are excerpts from the report which are pertinent to the Secondary Suites Study, and relate to rental information and housing affordability.

The first figure indicates that the number of primary (i.e. purpose-built) rental units in Oak Bay has remained relatively stagnant over the past 10 years, with a total of 1080 units as of 2019. For context, over this time period the stock of purpose built rental across the region grew from 47,904 to 53,778 units, a growth of approximately 12%.

The majority of primary rental units in Oak Bay are 1 , followed by 2 bedroom units. There are very few 3 bedroom or bachelor purpose-built rental units in Oak Bay.

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The next figure identifies the primary rental vacancy rate in Oak Bay. Generally a healthy vacancy rate is considered to be in range of 3% to 5%. In Oak Bay, the overall vacancy rate rose from 0.5% in 2017 to 2.2% in 2018, but fell to 0.2% as of October 2019. Primary rental vacancy rentals are critically low throughout the region (e.g. 1.0% in the City of Victoria in 2019) but especially the case in Oak Bay.

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Given the low vacancy rates, it is no surprise that housing affordability is a significant challenge in the District of Oak Bay. In the primary rental market, only couples with children (and couples without children in a unit) can meet the affordable shelter threshold for primary rental accommodation.

In addition to the primary rental housing market, there is a secondary rental housing market which includes the renting of entire homes, condominiums and secondary suites. In 2016, the difference between the total renter households in Oak Bay (at 1830) and primary rental households (at 1080) was 750 households. As noted above, not all of these secondary rental units are secondary suites, as they also include rented houses and condos. Nonetheless, the secondary rental housing market represents a significant source of housing in the community at approximately 40% of the total rental stock in Oak Bay.

The Housing Needs Report provides an estimated number of units needed to address projected population growth (based on regional population projections). Specific to the Secondary Suites Study, the HNR estimates that 178 units in the 0-1 bedroom category are currently needed (i.e. to address projected population between 2016 and 2019), and an estimated 289 studio/1 bedroom units are needed to address population growth between 2019 and 2024. Based on the Housing Needs Report, it is apparent that secondary suites play an important role (both currently and in the future) in meeting the demand for affordable rental housing in Oak Bay.

3.1.3 Zoning Bylaw No. 3531 Currently, Oak Bay’s Zoning Bylaw does not allow secondary suites as a permitted use in any zones. The zoning regulations for residential one-family dwellings was reviewed within the context of this Secondary Suites Study. There are five zones that permit one-family dwellings as a principal use and that are not

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considered small-lot residential or part of a commercial or comprehensive zone. These zones and their minimum lot sizes are shown in the table below.

Table 6 – Zoning Bylaw minimum lot size requirements

Zone Name or Description Minimum lot size

RS-1 One Family Residential Use 4047 m2 (43,560 ft²)

RS-2 One Family Residential Use 2226 m2 (23,958 ft²)

RS-3 One Family Residential Use 1115 m2 (12,002 ft²)

RS-4 One Family Residential Use 948 m2 (10,204 ft²)

RS-5 One Family Residential Use 558 m2 (6,006 ft²)

While secondary suites are not presently permitted in any zone, the Zoning Bylaw does allow a single- family residence to accommodate a maximum of two boarders, although a unit with separate cooking facilities is not permitted.

To allow secondary suites as a permitted use in residential zones, the District of Oak Bay would need to update the Zoning Bylaw, and address regulations including minimum lot sizes, location of the unit within the dwelling, occupancy, and any impacts on setbacks and area ratio (FAR) as applicable.

3.1.4 Parking Bylaw 3540 The parking requirements for zones that accommodate one-family residential dwellings were reviewed, including the RS-1, RS-2, RS-3, RS-4, RS-5 as noted above. One-family dwellings must accommodate the following parking requirements:

• Two (2) parking spaces per dwelling unit.

• Where a dwelling unit contains more than four (4) used for sleeping, an additional parking space shall be required for each, or part of each, unlit of two (2) such rooms.

• An additional parking space shall be required for each dwelling unit serving a boarding use.

• Half of parking spaces must be within a building. If secondary suites are permitted in the future, the Parking Bylaw would need to be reviewed and potentially updated to reflect any changes to parking requirements as determined through this study.

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3.1.5 Subdivision and Development Bylaw 3578 This Bylaw generally outlines the servicing requirements for new subdivisions, but can also apply at time of building permit. It does not address the permitted use and general form of new housing starts. As such, secondary suites are not impacted by subdivision activity, but rather through a zoning analysis as part of a building permit application.

3.1.6 Oak Bay Secondary Suites Review Committee In June 2010, the Secondary Suite Review Committee produced a report highlighting the current status of secondary suites in Oak Bay, public perception of suites, and the necessary requirements moving forward to assess whether legalizing secondary suites would be appropriate for the community.

The following table summarizes the benefits and challenges of secondary suites, as identified by the review committee through the engagement process.

Table 7 – 2010 Secondary Suites Review Committee engagement

Potential benefits of secondary suites Potential challenges of secondary suites

• It would bring young working families and others • Increased density would decrease the quality of into Oak Bay. life in Oak Bay.

• Oak Bay would be doing its share to help the • There would be increased noise, traffic and housing crisis. parking.

• Urban sprawl would be mitigated. • The extra costs on municipal services would not be shared equitably. • Suites can be “mortgage helpers”. • There would be additional burdens on the • Seniors could live in their homes longer. municipal infrastructure.

The Oak Bay Secondary Suites Review Committee recommended the following:

• Ensure that the potential negative impacts of secondary suites are mitigated.

• Conduct a comprehensive secondary suite study.

• Create a strategy for existing secondary suites.

• Conduct a proactive consultation approach. • Conduct informed public discussion led by Council.

Much of the work and recommendations from the 2010 process was utilized to inform the 2014 Official Community Plan policies on secondary suites, as well as this current Secondary Suites Study.

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3.1.7 Urban Forest Management Strategy The 2017 Urban Forest Management Strategy outlines strategies for maintaining the tree canopy and identifies potential policies for infill development. Because the Secondary Suites Study is only focused on suites inside residential dwellings, there will likely not be impacts to the tree canopy due to the building footprint. However, depending on the off-street parking requirements for secondary suites, there may be an impact to the urban forest.

3.1.8 Tree Protection Bylaw No. 4742 The Tree Protection Bylaw outlines the Districts regulation related to removing and replacing trees. The Secondary Suites Study is not expected to have any impacts on trees, except for potential parking considerations as noted in Section 3.1.7 above.

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4 COMMUNITY COMPARISON 4.1 Policies in Neighbouring and Comparable Communities The policies and practices related to secondary suites were reviewed in five communities – Town of Sidney, Township of Esquimalt, District of Saanich, City of Chilliwack and District of West Vancouver. A review of policies and bylaws was completed for all of the comparison communities. In addition, interviews were conducted with staff at the three municipalities in proximity to Oak Bay (i.e. Sidney, Esquimalt, and Saanich). Although each community has a tailored policy and regulatory approach, all secondary suites must conform with the BC Building Code as applicable.

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TABLE 8 – SECONDARY SUITE POLICIES AND PRACTICES IN COMPARABLE COMMUNITIES

Sidney Esquimalt Saanich Chilliwack West Vancouver

Legalization • Supported by OCP • Supported by OCP • Supported by OCP • Supported by OCP • Supported by OCP Experience • Secondary suites • Secondary suites • Secondary suites (secondary suites (secondary suites legalized in 1998, legalized in 2011 legalized in 2011, and coach housing) within principal dwelling and expanded in 2012 • Garden suites to be expanded in 2014 • Previously allowed detached secondary • Low uptake of permitted in 2021 • Garden suites were through spot zoning and in CD zones, suites) legalization process, • Low uptake of permitted as of 2018 Zoning Bylaw unregulated suites legalization process, October 2020. Update expanding continue to be even though building • Low uptake zones where prevalent permit fees were following legalization secondary suites are waived for the first in existing homes, allowed two years but higher uptake Lessons learned for new construction • Highly regulatory • framework creates Lessons learned No additional staff additional work, required following • Learning curve with legalization generally with little staff with respect to benefit documentation • Adherence to the • Residents surprised building code is most at amount of important for life paperwork required and health safety (e.g. floorplans for • No additional staff the building) required following • No additional staff legalization required following legalization

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Sidney Esquimalt Saanich Chilliwack West Vancouver

Context • Generally high level • Though there was a • High level of • High number of of community small initial community unregulated suites acceptance pushback from some acceptance prior to legalization. • 60 to 70 percent of homeowners, there • Approximately 33 • Growing acceptance single family areas is currently a high percent of homes and community have secondary level of community have illegal suites support for suites – acceptance secondary suites. approximately 400 • 50-60 percent of legal suites single family dwellings have secondary suites

Role of Diversity of housing Diversity of housing Diversity of housing Diversity of housing Diversity of housing Secondary Suites • Provide +90% of low • Still a large gap in • Provides some • Provides some • Provides some in Housing income housing in housing supply, additional housing additional housing additional housing the community potential for more diversity diversity and rental diversity and rental secondary suites Demographics Demographics Demographics Demographics • All demographics • Students, young • All demographics • Generally single adults, young people families

Zoning Bylaw • A self-contained set • A secondary • An additional • A secondary suite is • A dwelling unit Definition of of one or more Dwelling Unit that is dwelling unit located a self-contained accessory to a single Secondary Suite habitable rooms contained within and within a building of dwelling located family or two family used as an additional subordinate to, a residential within a single dwelling use. dwelling unit on principal Dwelling occupancy detached house and a lot subordinate to Unit located within a containing one other has separate the principal dwelling unit. cooking, sleeping,

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Sidney Esquimalt Saanich Chilliwack West Vancouver dwelling unit on the detached Single- and bathing lot. Family Dwelling. facilities. It is considered an accessory dwelling unit or a temporary accessory dwelling.

Zoning Allowed zones Allowed zones Allowed zones Allowed zones Allowed zones Requirements • Permitted in all • Permitted in all • Permitted in all RS • Various (see below) • Permitted in all Residential Zones single-family zones in Secondary Minimum lot size single-family (except in low dwellings (except in Suite Permit Area dwellings (except in • 2 density residential) Bed and Breakfast (i.e. within the R1-A – 500m Bed and Breakfast 2 Minimum lot size uses) Urban Containment • R1-B – 500m (one uses) family residential), 2 Minimum lot size Boundary) Minimum lot size • > 400m 675m2 (two family 2 Minimum lot size Unit Size Requirements • >530m residential) • None stated • None stated 2 Unit Size Requirements • < 90 sq. m. Unit Size Requirements • R1-C – 500m Unit Size Requirements Occupancy requirements • < 90 sq.m. or 40% of • R3 – 360m2 • < 90 sq.m. or 40% of the Principal Building • None stated 2 the Principal Building • Either the secondary • R1-D – 300m total floor area, 2 total floor area, suite or the principal Occupancy requirements (interior lot), 360m whichever is less. whichever is less. dwelling shall be • Either the secondary (corner lot) Occupancy requirements owner occupied Occupancy requirements suite or the principal Unit Size Requirements • None stated dwelling shall be • Owner occupancy or • < 90 sq.m. or 40% of owner occupied (a property manager the Principal Building signed affidavit is occupancy gross floor area, required) whichever is less. Occupancy requirements • None stated

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Sidney Esquimalt Saanich Chilliwack West Vancouver Parking Minimum parking Minimum parking Minimum parking Minimum parking Minimum parking requirements requirements requirements requirements requirements • 1 space per single • 1 space per dwelling • 2 spaces per single • 2 spaces for single • 1-2 spaces per single family dwelling + 1 unit (2 spaces family dwelling + 1 family dwelling, 1 family dwelling + 1 additional space for required for homes additional space for space for accessory additional space for secondary suite with secondary secondary suite dwelling unit secondary suite suites) • Of the three parking Issues Issues spaces, two must be Issues Issues enclosed • None reported • None reported • Lack of on-street

• None reported parking Issues Responding to parking Responding to parking • issues Responding to parking issues On-street parking issues pressures, resident • New parking bylaw • Neighbors can complaints reduced parking for trigger bylaw single family homes • There are no parking enforcement from 2 spaces to 1 requirements in an mechanisms (formal) space effort to preserve if there are 2 or green space • Secondary suite more complaints parking space must • Written complaints within 100m of an be independently are assessed by the illegal suite accessible bylaw office

Unregulated Enforcement Enforcement Enforcement Enforcement Enforcement Suites • Complaints-based • Complaints-based • Voluntary • City has introduced a • Options are to approach approach compliance policy of non- acquire a building • Complaint may • Municipality enforcement of permit and register complaints for trigger owner- responds to written occupancy existing secondary suites constructed

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Sidney Esquimalt Saanich Chilliwack West Vancouver requirement (for complaints to the Legalization prior to May 15, the suite, or legal suites), or bylaw office 2018, but will • Require building decommission it second continue to respond • Bylaw office is permit clause (for illegal lenient - if there are to emergencies and suites) real safety hazards instances of Legalization • Municipality will or neighbourhood potential hazard • Require building send a letter and issue, they will permit as well as require owner to enforce the bylaw Legalization one-time acquire a building permit or • Require building registration of the Legalization decommission permit as well as suite and annual • Variance process comply with current business license may be required in flood protection Legalization the case of requirements. • Require building conversion of an permit, building existing garage code compliance, and obtaining parking variance

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Sidney Esquimalt Saanich Chilliwack West Vancouver

Servicing • No separate fees • No separate fees • No separate fees • An additional • No separate fees • Most new suites • Only one water curbside waste have separate water meter per house collection fee is applicable to the metering • Owner can work secondary suite • Garbage service is with BC Hydro to provided with legal separate electrical suites, illegal suites billing may need to pay • Garbage service is small fee for an provided with legal additional garbage suites, illegal suites bin may need to pay small fee for an additional garbage bin

Licensing Not required Not required Not required Not required Registration required • $450 initial registration fee plus annual business license renewal ($85 to $450) Public Webpage and online PDF Webpage with Webpage with Webpage with FAQs and Webpage with zoning, Communication outlining the zoning and information on zoning information on other information permitting, and permitting requirements and other requirements requirements as well as registration a checklist for requirements homeowners

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5 REGULATORY CONSIDERATIONS This section summarizes some of the key issues to be considered by the District of Oak Bay when developing potential policies and regulations with respect to secondary suites. For each section, the existing requirements are highlighted as well as key issues and considerations. The list of potential regulations provides a broad set of ideas for consideration (i.e. not recommendations), which helped to inform the public consultation process (Section 6 of this report) as well as the refined list of options for consideration (Section 7 of this report).

5.1 Zoning Bylaw

The Zoning Bylaw considerations focus on allowing secondary suites within certain residential zones and setting minimum standards (e.g. lot size, parking, etc.). As previously noted, the focus of this study is secondary suites within a primary dwelling, and does not address secondary suites within accessory buildings, such as coach or laneway homes.

Permitted Use, Lot Size and Owner-Occupancy

Existing Zoning Requirements Currently there are no Zoning Bylaw regulations for secondary suites (there are regulations for boarding and lodging but not within a self- contained dwelling unit). As such, secondary suites are not allowed anywhere in Oak Bay unless a “grandfathered” covenant exists for an individual property.

Key Issues and Considerations • The scope of this study is only considering potential secondary suites within the principal single-family dwelling, and not within an accessory building (e.g. detached garage or carriage house).

• Allowing secondary suites in all single-family residential zones throughout the District, as opposed to only some single-family residential zones or specific neighbourhoods, makes it simpler to communicate with the public and generally easier to enforce.

• Limiting secondary suites to specific neighbourhoods / geographic locations may be perceived as limiting to those that wish to construct legal secondary suites. It is noted that in our research, existing secondary suites were located fairly uniformly across the District.

• There is general support for requiring homeowners to live on the property if part of the home is being rented out.

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• Depending upon the extent of the program introduced to regulate secondary suites, this could have a significant impact on District staffing and financial resources (e.g. bylaw enforcement, building inspection, business licensing).

• A community education program should be developed to ensure residents are aware of the regulations with respect to having a legal secondary suite.

Potential Regulations for • Allow secondary suites in all single family residential zones (RS-1, Consideration RS-2, RS-3, RS-4, and RS-5).

• Set a minimum lot size where secondary suites are permitted (generally based on the ability to provide additional off-street parking). Based on the RS-5 zone, the minimum lot size could be 558 square metres.

• Amend the Zoning Bylaw to require owner-occupancy on a property containing a secondary suite. Owner occupancy requirements need to be carefully written to ensure legal enforceability.5

• Consider a pilot program to limit secondary suites to specific zones and/or geographic areas (see not above regarding uniform distribution of existing suites).

Unit Size

Existing Zoning Requirements None

Key Issues and Considerations • Previously, the BC Building Code set a maximum unit size of 90 m2 (or 40% of gross floor area of the principal dwelling), but this was removed in 2019. Based on existing research, there are a number of existing unregulated suites in Oak Bay that are larger than 90 m2.

5 Government of BC, Secondary Suites: A Guide for Local Governments, pg. 17 ,2005. https://www2.gov.bc.ca/assets/gov/housing-and-tenancy/tools-for-government/uploads/secondary_suites.pdf

Draft Strategy – December 2020 23 District of Oak Bay Secondary Suites Study

• The BC Building Code regulations were also amended to permit secondary suites anywhere within the residential dwelling (i.e. not just the ).

Potential Regulations for • Allow secondary suites in any habitable part of the principal Consideration dwelling including the , the same floor as the primary dwelling, or in the basement, in order to be consistent with the BC Building Code.

• Although the BC Building Code no longer limits unit size, the District could consider regulating for maximum unit size of a secondary suite. This could a percentage of the gross floor area of the principal dwelling and/or a specified maximum size.

5.2 Parking Regulations Within the Zoning Bylaw, there are a number of regulatory considerations related to the requirement of additional off-street parking for secondary suites.

Existing Regulations None specifically for secondary suites, but additional parking requirements for boarders and additional .

Key Issues and Considerations • Tenants with cars will require a parking space (either on-street or off-street), although not all tenants will own vehicles.

• On-street parking is a noted challenge in some blocks within the community, while other neighbourhoods have adequate on-street parking. It is noted that other than for areas with “resident-only parking”, the provision of on-street parking is generally a public amenity for the entire community.

• Based on anecdotal and visual evidence, a large number of existing single-family homes in Oak Bay could not accommodate the additional off-street parking requirements due to historical house design and siting, lot frontages and narrow roadways. Accommodating additional parking may require significant changes to green space and tree canopy cover, boulevard trees, and additional on-site paving.

Draft Strategy – December 2020 24 District of Oak Bay Secondary Suites Study

Potential Regulations for • Require one additional off-street parking space for all secondary Considerations suites (existing and new). The additional parking space may not be in tandem with the existing off-street parking spaces, and would be limited by the maximum permitted paved surface.

• Require one additional off-street parking space but provide criteria for a relaxation of the parking space based on availability of on-street parking (methodology to be determined) or proximity to transit and/or commercial areas.

• Do not require additional off-street parking space for existing suites, but require it for new construction.

• Where additional parking is provided, require additional replacement trees where trees are removed.

• Conduct a pilot study for a period of time (e.g. 1 to 2 years) by not introducing additional parking requirements for secondary suites to test parking impacts. Communicate to residents that parking for secondary suites will be reviewed after the end of the pilot. Monitor and review parking impacts of secondary suites and revisit parking requirements in neighbourhoods where issues have emerged.

5.3 BC Building Code

The BC Building Code regulates all building construction within the province. Recent changes to the provincial regulations have improved the potential to construct legal secondary suites within the District particularly within existing homes, due to revisions to and heights, and egress requirements, and fire separation requirements with the provision of wireless, interconnected smoke alarms.

Existing Regulations BC Building Code

Key Issues and Considerations • The BC Building Code was revised in December 2019, which improved a number of previous regulations for secondary suites.

• Even with alternate compliance standards, however, some older homes in Oak Bay still may not be able to conform to the BC Building Code regulations.

Draft Strategy – December 2020 25 District of Oak Bay Secondary Suites Study

• Some amendments will be required to the District’s Building Bylaw to ensure that appropriate sections of the BC Building Code are referenced in the municipal bylaw.

Current Building Code • Removed the maximum floor space regulations (40% of the floor Requirements space of 90 m2 maximum)

• Ceiling heights reduced to 1.95 metres, but layout will be important for some projections.

• Stair height headroom requirements reduced, but stair tread requirements increased.

• Fire separation requirements reduced, especially if wireless, interconnected smoke alarms are provided (e.g. reduced to 15 minute fire separation).

• Windows and egress requirements have been revised, but is dependent on providing an adequate second means of egress.

5.4 Registration and Licensing

Registration of secondary suites can be used by municipalities to keep track of how many secondary suites are in operation and where they are located. Registration can be managed either through a voluntary registration list or a more formal business licensing process. It can also be used to achieve other desirable goals such as encouraging owner occupancy of either the primary dwelling or secondary suite. The challenge is finding the appropriate balance, as an overly-stringent process will not achieve the desired results, leading to additional enforcement requirements.

Registration and Licensing Requirements

Existing Regulations None

Key Issues and Considerations • A voluntary registration process can be used to help track secondary suites within the community. However, it is entirely dependent upon the actual number of suites registered, and as such may not provide an accurate assessment of overall inventory of secondary suites within the community.

• A formal licensing program could be managed through the business licensing program, but could have significant implications

Draft Strategy – December 2020 26 District of Oak Bay Secondary Suites Study

for staffing, particularly with respect to initial development of the program and ongoing maintenance. • Development of any online registration program (either voluntary or mandatory) would require a review of technological resources, which would have financial implications.

Potential Regulations for • Consider a voluntary registration process for secondary suites, Consideration with a nominal registration fee. • Consider a mandatory business licensing process for secondary suites, with initial and annual fees as appropriate.

5.5 Enforcement Enforcement of unregulated suites is currently an issue in Oak Bay, as it is in other BC communities which are trying to provide secondary suites as an important source of the rental housing stock. Many homeowners avoid regulations / registration because of the potential cost of conforming to BC Building Code requirements and meeting other regulatory requirements, such as rezoning, provision of additional parking spaces, and business licensing.

The considerations around bylaw enforcement are aimed at balancing the need to ensure health and safety in secondary suites, promote compliance with municipal regulations, and manage the financial impacts to the District for enhanced bylaw enforcement and administration. Regarding the latter (i.e. costs for administration), based on our discussions with key District public safety staff, it is not anticipated that there will be an impact to fire or police resources to ensure that secondary suites comply with health and safety requirements.

Existing Regulations The District responds on a complaint-driven basis for secondary suites, working with homeowners to improve health and safety issues and other building code compliance issues.

Key Issues and Considerations • Unregulated suites have not gone through building inspections and may not conform with BC Building Code requirements. This means that unregulated suites may have health and safety issues, particularly with regards to fire safety such as egress, smoke detectors, and adequate fire separation between the primary and secondary dwelling. • Although the BC Building Code has been recently revised, some of the older homes within the District can only meet BC Building Code requirements through expensive upgrades. Others may not be able to meet the requirements due to structural constraints (e.g. ceiling height).

Draft Strategy – December 2020 27 District of Oak Bay Secondary Suites Study

• The rental vacancy rates in Oak Bay and the region as a whole are extremely low and there are relatively few rental options in the community. A heavy enforcement program may have the negative impact of displacing tenants and creating increased housing vulnerability.

• A multi-pronged approach (including policy, regulation, enforcement, and education) is necessary to manage the scale of upgrades required to legalize existing suites and the health and safety risks for tenants.

Potential Regulations for • For one year after the date of legalization, invite property owners Consideration with existing suites to declare their suites at no charge. The purpose of this is to identify unregulated suites for potential compliance.

• Implement a policy of non-enforcement (voluntary compliance) whereby the District does not pursue enforcement of existing unregulated secondary suites as of a specified date.

• Require all secondary suites (existing and new) to conform with all municipal and provincial regulations, including the Zoning Bylaw and BC Building Code. This will require enhanced investments into administration, bylaw enforcement and communications.

• Whatever enforcement program is determined, conduct an extensive public education campaign about meeting the required health and safety, building code, and zoning requirements for secondary suites. This will help to spread awareness of the types of requirements suites should have in order to maintain a standard of safety for both homeowners and tenants.

5.6 Services and Infrastructure

The population of Oak Bay has remained relatively stable over the past few decades, at approximately 18,000. Although the community’s infrastructure continues to age, requiring a coordinated asset replacement strategy, based on discussions with District staff the capacity of the infrastructure should not be significantly impacted by secondary suites. Moreover, most cost recovery of utilities on a user-pay basis (e.g. water, sewer, garbage) and as such if a single-detached residence with a secondary suite uses more utilities, then they will pay for them accordingly.

Draft Strategy – December 2020 28 District of Oak Bay Secondary Suites Study

Existing Regulations The current rate structure for garbage, water, and sewer is based on usage. Roads and drainage are funded primarily through general taxation.

Key Issues and Considerations • There is a community desire that secondary suite owners and tenants pay their fair share for the benefit they receive from municipal services.

• Additional population from secondary suite tenants may increase demand for some services but potentially not others.

• Oak Bay’s population is relatively stable. As such, potential pressures on the capacity of infrastructure services due to secondary suites is not a significant concern at this time.

• The District’s current rate structure for garbage, water and sewer is based on usage. Therefore, any additional usage from secondary suite tenants will be reflected in the usage rates paid.

• Some communities have explored separate water meters for secondary suites. However, installing separate water meters would be expensive for homeowners and would not benefit the District (because additional usage is already captured through the rates). The primary reason would be to allow separate billing for tenants.

• Stormwater will not be impacted by the secondary suite unit, as the building footprint does not change. The impervious surface area of the lot may be affected if additional off-street parking is required.

Potential Regulations • Maintain current rate structure.

• Monitor the potential impact of secondary suites on servicing capacity, through water and sewer modeling. Integrate the consideration of secondary suites into future modelling of service capacity (i.e. increase single-detached household population in the model).

Draft Strategy – December 2020 29 District of Oak Bay Secondary Suites Study

5.7 Other Considerations

Canada Revenue Agency (CRA)

The impact of secondary suites on a homeowners’ potential taxes was identified, but it is an external consideration. Regardless of whether a suite is regulated or unregulated, a homeowner is expected to declare income earned from any rental properties and pay the required taxes. Currently, the CRA exempts homes used as principal residences from the Capital Gains Tax. While it is somewhat unclear, homes with rented secondary suites may impact the portion of profit from home sales that qualify for this exemption. In some cases, homeowners may not be reporting income earned from their suites to the CRA. Potential income tax impacts from secondary suites fall outside the scope of municipal action and the regulations that it would apply to both regulated and unregulated suites. Requiring formal registration of secondary suites could theoretically make it more difficult for homeowners to not declare their secondary suite income, and thus may be a deterrent to a registration or business licensing program.

Persistence of Unregulated Suites

Even in communities with relatively liberal secondary suites policies, unregulated suites continue to persist due to the challenges of enforcement, staff resources, and other potential implications (e.g. displacement of tenants, homeowner income impacts).

Local governments can support the uptake of regulated suites by removing obvious barriers and making the process attainable for a typical homeowner. This does not mean eliminating regulations that are necessary for tenant safety or community well-being; it means ensuring that regulations are achievable for a typical homeowner.

One opportunity to promote regulated suites and increase the supply of more affordable units is through incentivizing the installation of regulated suites at below-market rents. This approach has been used in some communities where secondary suites are a vital source of affordable housing for renters. For example, the District of Kitimat provides a 5-year forgivable loan to homeowners who install a regulated secondary suite, with higher amounts provided for achieving certain levels of affordability. Not only does this approach incentivize regulated suites at below-market rates, but it provides an incentive for homeowners to offer long-term rental housing instead of using the space for short-term rentals or other uses. 6

6 Information about the District of Kitimat’s Secondary Suite Incentive Program can be found at https://www.kitimat.ca/en/business-and-development/secondary-suites.aspx#Secondary-suite-incentive-program.

Draft Strategy – December 2020 30 District of Oak Bay Secondary Suites Study

6 COMMUNITY ENGAGEMENT 6.1 Overview

The first phase of community engagement for the Secondary Suites Study launched in April 2019 with two major engagement opportunities: a community open house and a District-wide survey (using MetroQuest). The purpose of these engagement opportunities was to provide members of the public with information about the project and to collect feedback on priorities, concerns, and considerations related to secondary suites.

The community open house was held on April 25, 2019 from 4:30 pm to 7:00 pm at the Sports View Lounge at the Oak Bay Recreation Centre. The open house was advertised through the Oak Bay News, the District website, and through multiple social media streams. A secondary suites newsletter was also circulated to every Oak Bay household through the Oak Bay News and included information about the study and engagement opportunities.

A community survey using MetroQuest was launched at the community meeting and closed on May 13, 2019. The survey was advertised through the newsletter, the District website and multiple social media streams.

In addition, an information “pop-up” booth was set up during the Oak Bay Night Market in July and August 2019 to obtain further feedback from the community.

6.2 Key Issues

Similar to the findings of the Secondary Suites Review Committee in 2010, engagement participants were somewhat divided on the topic of secondary suites, with strong opinions on both sides of the issue.

Participants that support legalizing secondary suites highlighted the importance of providing more housing options and greater housing diversity in Oak Bay, including contributing positively to responding to the housing crisis in BC. Some said that allowing secondary suites would provide more housing options for individuals, students, young families, and seniors by increasing rental options, providing mortgage helpers, and helping seniors age in place. Comments noted that secondary suites would be a good way to increase density without changing the character of Oak Bay, and that secondary suites would better utilize existing homes and infrastructure.

Participants that were against legalizing secondary suites were concerned about safety issues, parking congestion, and the potential negative impacts to neighbourhood character from secondary suites. Some said that there were no benefits to secondary suites and that density is a negative trend that would put stress on the community and services.

Drawing from our initial research, feedback from the community identified the following policy concerns to be addressed as part of a secondary suites regulatory program:

Draft Strategy – December 2020 31 District of Oak Bay Secondary Suites Study

• Parking and road congestion. Engagement participants were concerned that secondary suites would increase parking issues in Oak Bay and that off-street parking should be provided if on-street parking is limited. Participants were also concerned about the enforcement of parking regulations and avoiding any impact on trees. • Owner occupancy. Many participants indicated that they would like to see owner occupancy as a requirement for secondary suites. • Health and safety standards. Many participants felt that secondary suites should meet health and safety standards and that these should be enforced by the District. Some were concerned that older homes would not be able to meet health and safety standards and that strict enforcement would disincentivize suites. • Service and tax impacts. Some participants were concerned about the impact of secondary suites on municipal services and that any tax burden from secondary suites would be shouldered by homeowners without secondary suites.

6.3 Community Survey Summary MetroQuest is a graphically rich and easy-to-use survey platform. It was selected for the initial engagement phase of this study because it generates a high response rate, and the goal was to make it as easy as possible for community members to provide their input. A total of 795 surveys were submitted, a very high response rate that reflects the interest in the community on the subject as well as the efforts of staff to promote survey participation.

To make the survey accessible to everyone who wanted to provide input, this was an anonymous and voluntary survey, and as such the results are not statistically valid. However, voluntary surveys are widely used in studies of this nature and the high response rate and range of participants indicate good representation from the community.

The survey provided opportunities for open-ended comments through which many ideas and opinions were captured. As with the open house, comments have been grouped into similar topics and themes and those mentioned by least two participants are summarized in the next section. The number of comments for each topic or theme is shown in parentheses. Effort was made to keep as much detail from the comments as possible in the summary.

6.3.1 Survey Participants Percentages are based on the total number of respondents who answered the question. The survey generated responses from a wide range of residents, though participation among people under 30 and those living in secondary suites was relatively low.

Draft Strategy – December 2020 32 District of Oak Bay Secondary Suites Study

Figure 1 – Survey Respondents – Age

19% 19 years or under 0% 5% 20 to 24 years 1% 3% 25 to 29 years 2% 7% 30 to 39 years 14% 11% 40 to 49 years 24% 15% 50 to 59 years 22% 18% 60 to 69 years 24% 22% 70 years and over 13%

0% 5% 10% 15% 20% 25% 30%

Census Survey

Figure 2 – Survey Respondents – Neighbourhoods

South Oak Bay 32%

North Oak Bay 20%

Estevan 18%

Henderson 14%

Oak Bay Avenue 7%

Harling Point 4%

I dont live in the District of Oak Bay 3%

Uplands 2%

0% 5% 10% 15% 20% 25% 30% 35% 40%

Draft Strategy – December 2020 33 District of Oak Bay Secondary Suites Study

Figure 3 – Experience with Secondary Suites

I live on a blockstreet with secondary suites 53%

I own a secondary suite 11%

I live in a secondary suite 4%

None of the above 24%

0% 10% 20% 30% 40% 50% 60%

6.3.2 Priorities for Secondary Suites Participants were provided a list of priorities related to secondary suites and asked to identify their top three. The list was based on known community priorities, what has been seen in other communities, and what emerged from engagement with District staff. Results are shown in the graph below.

Health and safety, neighbourhood character, and housing availability were most often selected as top three priorities (1 being highest priority, followed by 2 and then 3). For those that indicated their priorities, parking (168) and neighbourhood character (150) stood as a number one priority chosen most frequently.

Figure 4 – Priorities for Secondary Suites

Health and safety 79 98 180

Neighbourhood character 150 113 80

Housing Availability 90 136 98

Parking 168 93 59

Mortgage helpers 84 136 72

Other 27 13 63

0 50 100 150 200 250 300 350 400

1 2 3

Draft Strategy – December 2020 34 District of Oak Bay Secondary Suites Study

The following context statements were provided for each priority:

• Health and Safety – Some existing suites may not comply with building and fire standards, with impacts on health and safety, as well as home insurance. The District also needs to ensure that there is sufficient service capacity, such as for sanitary sewer.

• Neighbourhood Character – Secondary suites affect neighbourhood character as there are additional tenants living in neighbourhoods, impacting parking, the use of outdoor space, maintenance of homes, trees, etc.

• Housing Availability – Approximately one quarter of the residents in Oak Bay are renters. Secondary suites can increase the amount and type of rental housing in the community.

• Parking – Secondary suites can increase parking demand, and suites need sufficient parking space. (Note: currently the District requires a home to have at least two off-street parking spaces, plus additional parking for boarders).

• Mortgage Helpers – Secondary suites can provide extra income to homebuyers to help make a housing purchase more affordable. Suites can also help older households age in place and generate additional income in retirement.

Respondents were provided space for comments about each priority they ranked. A total of 315 comments were received across all priorities. The table below shows a summary of the most frequently cited topics and themes from the comments with the number of comments for each theme shown in parentheses.

Parking (57)

• Parking in Oak Bay is already an issue and it may get worse through the legalization of secondary suites. Current parking bylaws are not enforced, and narrow streets cause safety issues in some area. Any increase to the current level of street parking will negatively impact pedestrians and motorists, and may lead to conflict between neighbours. (23) • The legislation of secondary suites must address the lack of parking. Some participants felt allocating a specified number of parking spaces per house (including on/off street parking) and the enforcement of parking bylaws is the best method of mitigating parking concern. Other participants suggested that secondary suites should be required to provide off street parking for their tenants. (15) • Tenants in secondary suites may or may not have vehicles. In some cases, there should be a requirement that additional tenants (of suites) do not own or rent a car. (5) • Other communities that have allowed densification have parking issues. (4) • Parking is not an issue in Oak Bay. (2)

Draft Strategy – December 2020 35 District of Oak Bay Secondary Suites Study

Neighbourhood Character (52)

• Legalizing secondary suites would increase density, and negatively impact the character of Oak Bay. Communities that allow densification have a less attractive neighborhood character. Suites should not be legalized. (15) • More parked cars on the streets of Oak Bay negatively impacts the character of the neighborhood. (10) • Newly constructed buildings should maintain the look and feel of the community. (7) • Secondary suites do not negatively affect the character of Oak Bay. (6) • Maintaining green space and streets will allow neighbourhood character to remain with increased density. (5) • There are pros and cons to introducing a younger demographic into the community. (3) • Secondary suites will cause noise issues in Oak Bay. (2)

Housing Availability (21)

• The legalization and regulation of secondary suites is an important priority for the District of Oak Bay. (6) • Legalizing secondary suites and increasing affordability will add diversity to the community, which is a benefit to Oak Bay. (4) • Secondary suites increase accessibility to families and seniors. (2) • Secondary suites support infill and new build development. (2) • Multiple units in a single house is a concern. (2)

Mortgage Helpers (20)

• Allowing secondary suites will provide mortgage support for families looking to buy homes in Oak Bay, as well as seniors that desire to stay in their homes. Secondary suites will attract desirable community members to Oak Bay. (8) • Legalizing secondary suites would negatively impact the character of Oak Bay and should not be considered. Low density or neighbourhood exclusivity is an important reason for living in Oak Bay. (4) • Legalizing secondary suites will add diversity to the community. Increasing rental and mortgage affordability will reduce the barriers to diversity. (3)

Draft Strategy – December 2020 36 District of Oak Bay Secondary Suites Study

Health and Safety (33)

• It is important that legal secondary suites comply with safety standards. The safety of tenants residing in secondary suites is compromised under the current conditions. (9) • Secondary suites may cause hazards and nuisances through issues with noise, parking, crime, or unsafe secondary suites will remain after legalization. (8) • An increase in population density will add demand to infrastructure, such as the water and sewer system. A tax increase to maintain or expand the services in Oak Bay would be undesirable. (6) • Maintaining the current zoning systems and ensuring the enforcement of current and future bylaws is an important priority. (3) • Secondary suites should be installed in new builds only. (2) • Secondary suites should be legalized to support seniors to age in place. (2)

Other (132)

• Bringing more people into Oak Bay will place a larger burden on municipal services such as water and sewer systems, and facilities such as recreation centers. More demand on municipal facilities and services will increase taxes. (36) • The legalization of secondary suites will create more affordable living options in Oak Bay, will promote diversity, and will encourage desirable residents, like families, to move to Oak Bay. (22) • The survey or project lacks information, clarity, or promotes a biased view that favours legalizing suites. Some participants that were opposed to secondary suites felt that the survey did not provide a means to object to their legalization. (11) • The lack of density or exclusivity of the neighbourhood is an important reason for living in Oak Bay. The legalization of secondary suites will create crowding in Oak Bay. (9) • Enforcement of current and future bylaws is a concern. (7) • The legalization of secondary suites will allow seniors to remain in their homes as they age. (6) • Current green space and trees must be maintained. (6) • Increased noise levels are a concern. (5) • The legalization of secondary suites will result in increased policing of unneighbourly tenants. (3) • Owner occupancy should be required for homes with secondary suites. (3) • Parking and traffic congestion resulting from the legalization of secondary suites is a concern. (3) • Opposed to home rebuilds. (2) • Secondary suites should be legalized to support additional family members living in the home. (2) • Secondary suites should be legalized more quickly. (2) • There should be a bylaw to regulate tenants that are not related to the homeowner. (2)

Draft Strategy – December 2020 37 District of Oak Bay Secondary Suites Study

6.3.3 Statement Ratings Participants were asked to rate their agreement to a variety of statements on a scale of one to five stars. The purpose of these questions was to understand perceptions around secondary suites. Participants were instructed that a 1-star rating meant that they did not agree at all with the statement, while a 5-star rating meant that they fully agreed with the statement. Ratings of 4 or 5 stars were interpreted as agreeing with the statement, while ratings of 1 or 2 stars were interpreted as disagreeing. Ratings of 3 stars were interpreted as neutral or undecided. Respondents were given the opportunity to suggest additional statements or issues (“suggest another”) within each category that they rated. These are summarized below the graph for each topic. A total of 113 suggestions or comments were received across all priorities. 6.3.3.1 Heath and Safety The majority of respondents agreed with the health and safety statements, indicating that there is concern about health and safety issues in unregulated secondary suites and that there is a desire for public education about secondary suites and enforcement of safety standards.

Figure 5 – Health and Safety Statement Ratings

Information and Education: The District should educate 53% 18% 16% 5% 9% residents about secondary suites (safety, etc.)

Health and Safety: Health and safety issues are a concern 51% 14% 12% 10% 13% in unregulated secondary suites (e.g., lack smoke alarm)

Building Code: Standards should be enforced, including 50% 10% 13% 10% 16% decommissioning of non-compliant suites

0% 20% 40% 60% 80% 100%

5 4 3 2 1

Health and Safety Comments (21)

• Density and reduced green space will impact mental health of the community. Secondary suites will put undue pressure on neighbours and community resources. (4) • Non-compliance with building code is a problem. A minimum building standard, specifically for wiring and should be enforced. Existing suites should be forced to conform before new ones are allowed. (4) • Regulating suites makes them safer. Existing suites should be grandfathered if they are deemed safe. (2) • Suites should be taxed to offset the costs of increased density. The regulation of suites should be funded by suite owners, and there should be huge penalties for non-compliance. (2)

Draft Strategy – December 2020 38 District of Oak Bay Secondary Suites Study

6.3.3.2 Housing Stock When it comes to housing stock, most respondents agree that secondary suites add to the total stock of rental housing in Oak Bay. Respondents were divided about whether an annual registration fee should be applied to secondary suites and whether secondary suites should be restricted to single family homes.

Figure 6 – Housing Stock Statement Ratings

Housing Availability: Secondary suites add to the total 61% 10% 9% 4% 16% stock of rental housing in the District

Registration: Secondary suites should have to pay an 36% 6% 11% 10% 37% annual registration fee

Location: Secondary suites should be allowed only within 28% 11% 16% 9% 36% single family homes (same building)

0% 20% 40% 60% 80% 100%

5 4 3 2 1

Housing Stock Comments (51)

• Do not allow secondary suites. Density is inherently bad and Oak Bay should not strive to become more affordable. Density from secondary suites will put too much pressure on infrastructure and destroy neighborhood character. Secondary suites will create bad feelings between neighbours. (15) • Oak Bay should diversify and increase the housing stock, as well as support density. Diversity will positively benefit the community. Oak Bay should allow other forms of housing, such as laneway / carriage houses, , four-plexes, etc. The District can increase density by rezoning the Oak Bay Village. Diverse housing includes secondary suites, which are important for supporting students. (11) • Suites should be legalized under the condition that owner occupancy is required. (4) • Survey questions were ambiguous, including: suite ‘location’ question not understood, ‘education’ question not understood, meaning of 'gentle' density not understood. (4) • Parking is a problem: parking permits should be required, no parking on streets. (2) • Do not allow short-term rentals or strictly regulate Airbnb. (2) • Secondary suites will be a major change to the community. buildings should be allowed on major roads rather than allowing secondary suites: they are a better means to adding density. (2) • Tax suites fairly to offset the costs to the community and register and tax suites at provincial and federal level. (2) • Require consensus among neighbors within 100m of the proposed suite. (2)

Draft Strategy – December 2020 39 District of Oak Bay Secondary Suites Study

6.3.3.3 Neighbourhood Character When it comes to neighbourhood character, more than half of respondents agreed that gentle density through secondary suites is good for the community and disagreed with the statement that secondary suites negatively impact the character and cleanliness of neighbourhoods. Approximately half of respondents felt that secondary suites should provide additional on site (i.e. off-street) parking.

Figure 7 – Neighbourhood Character Statement Ratings

Densification: Gentle density through secondary suites is 43% 16% 11% 6% 24% good for the community

Parking: Secondary suites should have to provide 43% 9% 14% 11% 24% additional on site parking

Neighbourhood Character: Secondary suites negatively 27% 5% 9% 10% 48% impact the character and cleanliness of neighbourhoods.

0% 20% 40% 60% 80% 100%

5 4 3 2 1

Neighbourhood Character Comments (31)

• Do not allow secondary suites. Density is negative and will increase nuisances, noise, and parties. Increased density may be acceptable in the Village core only. (6) • Parking is already a problem. All parking in residential areas should require permits. (4) • Define 'gentle' density. (4) • More suites will negatively impact greenspace. Added burden on parking should not be allowed to impact greenspace. (4) • Suites should be taxed in order to offset the costs of increased density in the community and enforcement of suite regulations. Information to the community should be clear, and a transparent process must be established. Legalizing suites raises the question of whether owners should pay a business tax. (3) • Introducing secondary suites will be a major change to the community. Secondary suites change the neighbourhood character, with parking in front of houses, noise, raised taxes, and bad feelings between neighbours as they do not register their suites. (3) • Increase housing stock, density and diversity are not bad. Diversity will positively contribute to neighborhood character and benefit the community. Suites are a preferable form of density to apartment buildings. (3) • Suites should be legalized under the condition that owner occupancy is required. (2)

Draft Strategy – December 2020 40 District of Oak Bay Secondary Suites Study

6.3.4 Experience of Secondary Suites Respondents who live in or own a secondary suite were asked to describe their situation. The purpose of these questions was to capture a variety of experiences such as owner occupancy, whether people were living alone or with families, how safe they felt their suite was, and whether they owned a car. Percentages are based on the total number of respondents who answered the question.7

Respondents who live in secondary suites were asked to describe their situation and these results are summarized in the graph below.

Figure 8 – Secondary Suite Tenants

I feel that my suite meets basic standards of safety,… 78%

I own a vehicle 61%

My landlord lives in the building where my suite is located 54%

I park my vehicle in a garage or driveway on the property… 41%

My family lives in a secondary suite 28%

I am a post-secondary student 28%

I live alone 22%

I live with roommates 17%

0% 20% 40% 60% 80% 100%

Respondents who own secondary suites were asked to describe their situation and these results are summarized in the graph below.

7 Note that more people answered the questions shown in this section than had indicated that they live in or own a secondary suite (shown in Section 3.1). The results in Figure 8 – and

Figure 9 – are based on the number of people who answered those questions specifically.

Draft Strategy – December 2020 41 District of Oak Bay Secondary Suites Study

Figure 9 – Secondary Suite Owners

I feel that my suite meets basic standards of safety, 95% including having a smoke detector

I live in the building where my suite is located 89%

I would like to be able to legalize my suite if the District 71% allowed it

My suite is smaller than 90 sq. m. (969 sq. ft.) 61%

My suite has a parking spot for the tenant on the property 51%

0% 20% 40% 60% 80% 100%

Compared to survey respondents overall, a relatively small percentage were secondary suite tenants or owners. The results in the graphs above should be interpreted with a high degree of caution. The findings indicate further exploration may be required on the following topics:

• Most tenant and owner respondents reported that their suites met basic standards of safety, though the percentage of tenants who felt this way was lower than the percentage of owners. • Parking – Less than half of tenants said they park in a garage or driveway and only half of owners said that they have an off-street parking spot for tenants. This may indicate low car ownership or that off- street parking is unavailable. • Only half of tenants said that their landlord lives in their building, thought most owners said that they live in the building where their suite is located. • It may be relatively common for suites to be larger than 90 sq.m.

6.3.5 Issues or Concerns with Secondary Suites Respondents were asked if they had any issues or concerns related to secondary suites that District staff should consider. These comments are summarized below.

Comments (568)

• Parking and congestion are issues in Oak Bay. If on-street parking is not available, off-street parking should be provided. Congestion will impact the safety of Oak Bay streets. (166) • No additional issues or concerns with secondary suites. (66) • Regulations should not be overly restrictive. Suites should be legalized and regulated to ensure the livability, health, safety and building code requirements are met. (56)

Draft Strategy – December 2020 42 District of Oak Bay Secondary Suites Study

• Secondary suites will cause changes or losses to the character of Oak Bay. Suites will invite tenants that will not contribute to the community, and will cause issues with cleanliness, noise and parties that will disrupt the neighbourhood. (47) • Ensuring that households with secondary suites pay for the additional burden on municipal services is important. Suites should be taxed in a way that is equitable, based on their consumption and burden on infrastructure and services. (30) • Secondary suites are a valuable addition to the housing stock. (29) • Secondary suites are illegal and should not be allowed. (26) • Secondary suites are important mortgage helpers that make it possible for senior people to age in place and young people and families to live in the community. (25) • Concerned about how the District will ensure enforcement and monitoring. (15) • Secondary suites will improve the character and/or values of Oak Bay. (13) • Owner occupancy should be required for homes with secondary suites. (10) • There are additional or better solutions than secondary suites to address housing concerns. (6)

6.3.6 Conditions for Secondary Suites Respondents were asked “What conditions would make regulated secondary suites beneficial to you, your neighbourhood, and the Oak Bay community as a whole?” and were able to select as many options as needed. Percentages are based on the total number of respondents who answered the question. Four key conditions emerged: conformance to BC Building Code requirements, adequate parking for suite tenants, owner occupancy, and no impact on trees. Only 10 percent of respondents felt that none of the options presented would make secondary suites beneficial.

Draft Strategy – December 2020 43 District of Oak Bay Secondary Suites Study

Figure 10 – Conditions for Making Secondary Suites Beneficial

Requiring owners to conform to Building Code 72% requirements (this would be standard for regulated suites)

Having adequate parking (on and off street) 60%

Requiring owners to live in the same building as the suite 55%

No impact to trees through additional off-street parking 54% requirements

Requiring owners to have a business license 30%

Other 13%

None of the above 10%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Those that selected “Other” or who had additional comments on this topic were able to write in other suggestion and these are summarized below.

Comments (240)

• Do not allow secondary suites, there are no conditions that would make suites beneficial to me or my neighborhood. (43) • To address parking and congestion issues in Oak Bay, all parking should be off-street and there should be a maximum number of cars per household (or suites owners should not be allowed to rent to tenants with cars). Parking regulations should be strictly enforced, and the Tree bylaw should be relaxed in order to accommodate more off-street parking. (31) • There should be adequate consideration of the infrastructure capacity of Oak Bay. Taxation and / or licensing fees should recuperate the additional burden of cost on infrastructure, services, enforcement, transportation, schools, and CRD levies. (21) • Diversify the housing stock by allowing laneway / carriage houses, townhouses, and seniors housing, and creating affordable housing. Suites are important mortgage helpers and help aging in place. (15) • Legalizing and regulating suites will improve their safety. However, suites will have difficulty meeting building code, especially with respect to ceiling height. There should be some leniency with which the building code is applied, with a focus on health and safety. (12) • Suites will negatively impact greenspace through increased parking pressure. There should be absolutely no loss of trees or greenspace to accommodate more parking. (12)

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• Requiring owner occupancy improves the maintenance of suites and ensure there is less tenant turnover. (12) • Strong enforcement of secondary suite regulations is necessary. Regulation and enforcement of noise. (12) • No issues with suites. Secondary suites should be legalized to create diverse housing and fight climate change. Parking is not an issue in Oak Bay / may be a non-issue soon with changes in behaviour. (10) • Suites currently function well without any regulations or enforcement. Opposed to legalizing suites and in-favour of the current system--avoid over-regulating suites (8) • There should be a maximum number of suites on a street, or number of tenants in a suite. (7) • Strictly regulate short-term rentals (e.g., Airbnb). Suites should be for long-term rental only. (5) • Provide tenant and landlord resources, such as dispute mechanisms and support to understand legislation. Landlords should have to comply with Residential Tenancy Act. (4) • Secondary suites should only be allowed for family suites. (3) • Implement rent control to ensure landlords are not overcharging renters. (3)

6.3.7 Other Comments At the end of the survey, respondents were provided space to provide any additional comments not covered in the previous questions. These comments are summarized below.

Comments (329)

• The legalization of secondary suites is an important priority for the District of Oak Bay to move forward on. (96) • Legalizing secondary suites would negatively impact the character of Oak Bay and should not be considered. The lack of density or exclusivity of the neighbourhood is an important reason for living in Oak Bay. (65) • Increase housing stock. Housing supply, diversity, and affordability are important issues. There is a need for additional alternative housing options, such as garden suites and dividing homes into strata units (duplex) (26) • The survey or project lacks information, clarity, or promotes a biased view by favouring legalization. Some participants that were opposed to secondary suites felt that the survey did not provide a means to object to their legalization. (19) • Suites are important sources of income for homeowners and of housing for tenants by providing mortgage helpers and improving housing stock (12) • Enforcement of bylaws around suites is already lacking to ensure compliance is met in suites and on the impacts that suites directly affect, such as parking and yard maintenance (neglect). Enforcement of bylaws is needed, and illegal suites should simply be shut down. (16)

Draft Strategy – December 2020 45 District of Oak Bay Secondary Suites Study

• Suites currently function well without any regulations or enforcement. Do not introduce regulations or fees that discourage suites. Some comments mention that building code is difficult to meet (especially ceiling height) even though suites are otherwise livable. (16) • Enforceable clear regulations will make secondary suites safe, provide revenue to the community, and ensure suites are visually appealing to the community is key to success. Regulating suites will allow the community to improve taxation and enforcement of something that already exists. Existing suites should require inspections for fire and life safety and new suites should meet the building code. (9) • Owner occupancy should be a requirement for the legalization of secondary suites. (4) • Regulate the density of suites – e.g., limit number of suites on a block, require consensus of homeowner within 100m, or require minimum lot size for properties with secondary suites. (4)

6.4 Community Open House The community open house included a series of panels providing information on the study process and secondary suites in Oak Bay, participatory panels where attendees could provide their feedback, and opportunities to complete the community survey (both paper copies and laptop stations were provided). The open house was facilitated by District staff, Urban Systems staff, and volunteers from the Advisory Planning Commission. A high number of facilitators were present to provide ample opportunities for attendees to ask questions and discuss different aspects of secondary suites.

An overview of attendees and themes from comments are summarized below. Comments have been grouped into similar topics and themes and those mentioned by least two participants are summarized below. The number of comments for each topic or theme is shown in parentheses. Note that because participants could see each other’s comments, the number of comments does not necessarily correspond with level of support (for example, a participant who sees their opinion reflected in other people’s comments may not add their own).

Approximately 120 community members attended. Most signed in at the front desk and requested to be added to the email distribution list for updates on the study.

6.4.1 Open House Attendees Participants were asked to provide some information about themselves to better understand who was attending the open house. These results are presented below. There was good representation from Henderson, South Oak Bay, and North Oak Bay neighborhoods. Most participants reported that they live on a street with secondary suites but that they do not own or live in a secondary suite.

Percentages in the following graphs are based on the total number of respondents who answered the question.

Draft Strategy – December 2020 46 District of Oak Bay Secondary Suites Study

Figure 11 – Neighbourhood

Henderson 34%

South Oak Bay 29%

North Oak Bay 20%

Estevan 9%

Harling Point 6%

Oak Bay Avenue 2%

Uplands 1%

0% 5% 10% 15% 20% 25% 30% 35% 40%

Figure 12 – Experience with Secondary Suites

Lives on a Street with Secondary Suites 54%

Owns a Secondary Suite 22%

None of the Above 20%

Lives in a Secondary Suite 4%

0% 10% 20% 30% 40% 50% 60%

6.4.2 Positive Aspects of Secondary Suites Attendees were asked “What are the positive aspects / benefits of secondary suites that the District should consider?” and were able to provide as many comments as needed.

Comments (96)

• Oak Bay has a social responsibility to provide diverse and affordable housing to meet the needs of the greater community. Secondary suites are important mortgage helpers that will keep a family demographic in the community. People also mentioned it was a social responsibility to provide diverse and affordable housing in the current housing crisis. Comments cited that keeping families in the community was very important, along with supporting multi-generational living, aging-in- place, allowing people to return to the community, and supporting a younger (student) demographic in the community, who can provide services to seniors and families (seniors care, babysitting, etc.). (55)

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• Secondary suites can be regulated and taxed for the benefit of the community. Comments mentioned that secondary suites already exist and should be regulated so that they can be taxed and brought up to appropriate health and safety standards. Comments also mentioned that regulating suites could help the District of Oak Bay crack down on short-term rentals (e.g., Airbnb). (14) • Secondary suites will add gentle density that will benefit the community. People cited that they felt secondary suites were a good way to increase density in the community and provide a safer and more vibrant environment, without changing the character of Oak Bay. Comments mentioned that gentle density will improve the walkability and safety of Oak Bay, revitalize Oak Bay Avenue, benefit the environment and reduce GHGs, protect and utilize the existing housing stock, benefit the economy and provide housing for those working in Oak Bay, and reduce urban sprawl and encroachment on agricultural lands. (13) • There are no benefits to secondary suites. Comments mentioned that secondary suites change neighborhood character and cause parking issues. (8) • Parking issues are not a significant issue in the community or are not related to secondary suites. (4) • Owner occupancy should be required for homes with secondary suites. (2)

6.4.3 Negative Aspects of Secondary Suites Attendees were asked “What are the negative aspects / issues of secondary suites that the District should consider?” and were able to provide as many comments as needed.

Comments (89)

• Density is a bad thing that adds stress on the community. Comments mentioned concerns with overcrowding. People said that they moved to Oak Bay because it is quiet and that changing this would be negative. People also said that growth and affordability do not fit with the character of Oak Bay and that density will cause neighborhood degradation and greenspace degradation. (23) • Parking is an issue that will worsen with secondary suites. (19) • There are no negative effects of regulating secondary suites. Participants cited that the neighborhood character won’t change dramatically, and that parking is not a real issue related to secondary suites. Participants also said that suites should be part of a larger densification strategy and that elitism is not appropriate amidst the housing crisis. (16) • Secondary suites may lead to increases in costs and taxes that are born by existing single-family homeowners that don’t have secondary suites. Comments mentioned that enforcing regulations and policing secondary suites will be an additional burden to taxpayers, that suite owners make an additional income without contributing to the community, and that suites will cause a reduction in housing values in the area. (7) • Secondary suites can lead to reduced level of services to the community. Comments mentioned concerns about increased infrastructure cost and demand, including sewer and water, garbage, and roads. Additionally, additional resources required to permit and enforce secondary suites regulations will draw from other services and a burden on schools. (5)

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• There are issues with enforcement that should be addressed, including the lack of enforcement and lack of registration of current illegal suites, as well as the ability for suites in older homes to meet building code. (4) • Secondary suites come with increased hazards, such as fire hazards and crime/neighborhood safety. (3) • People will have suites without living in the home unless owner occupancy is required. Comments mentioned that landlords should live on the property, as the Airbnb potential is undesirable. Comments also mentioned that the District of Oak Bay should regulate Airbnb’s before allowing suites. (3)

6.4.4 Conditions for Secondary Suites Attendees were asked “What conditions could help secondary suites be beneficial to the community?” and were able to select as many options as needed. Based on these results, the top three conditions for open house attendees are as follows: owner occupancy, building permits, and parking.

Figure 13 – Conditions for Secondary Suites to Be Beneficial

Requiring Owners to Live in the Same Building as the Suite 48%

Requiring Owners to Conform to Building Code 45% Requirements

Having Adequate On and Off Street Parking 42%

No Impact to Trees Through Additional Off Street Parking 28% Requirements

Requiring Owners to Have a Business Licence 24%

Other 8%

None of the Above 3%

0% 10% 20% 30% 40% 50% 60%

Percentages in the graphs above are based on the total number of people who attended the community meeting. Not all attendees participated in this question.

6.4.5 Other Comments Attendees were also provided an opportunity to share any other comments.

Draft Strategy – December 2020 49 District of Oak Bay Secondary Suites Study

Comments (68)

• Participants expressed an urgent need to legalize suites for safety reasons, for the right to stay in their homes and age in place as they see fit, and to act ethically and responsibly amidst the regional housing crisis. (13) • Participants felt that more housing options should be considered and promoted in addition to secondary suites, specifically carriage houses, small lot subdivision, duplexes and triplexes, and strata. (11) • Participants expressed that they were against legalizing suites or that they did not want Oak Bay to undergo any change. (6) • Enforcement of bylaws is lacking in Oak Bay, specifically with respect to enforcing parking regulations. (6) • Concern around the ability for suites to meet code, and actions taken if existing suites are not able meet code under new regulations. Minimize restrictive regulations to suites—legalization may have a negative impact on the total number of suites in the community. (5) • Number of secondary suites in the community should be limited. (2) • Introduce regulations that prohibit using suites for short-term rental (Airbnb). (2)

6.5 Pop-Up Booths In addition to the Open House, an information booth was set up at the Oak Bay Farmers Market during the summer of 2019. Approximately 30 to 50 people attended the booths to gain information and provide input on the secondary suites study. While there were no official surveys being conducted during this period, it did provide an opportunity to interact with the community and provide additional information about the study and answer any questions to date. Some of the community comments noted that allowing secondary suites was a good step for increasing housing affordability and improving health and safety issues, and noted that the process should be broadened to also allow other building forms such as duplexes and laneway housing. Other comments noted that secondary suites are mindful of the climate emergency and minimizing our ecological footprint, but that they need to be considered in context with the neighbourhood character. Community concerns focused on parking issues and long-term housing strategies if secondary suites are allowed.

6.6 Interviews with Postsecondary Institutions Recognizing the importance of secondary suites in providing housing for postsecondary students in the Capital Regional District, interviews were arranged in December 2018 with representatives from the University of Victoria and Camosun College. Key takeaways from these interviews are summarized below:

• Secondary suites are an important source of housing for students. A large number of students have to find housing in the community. Camosun College does not provide housing. Though they have a large project underway, housing at the University of Victoria is not intended to house all students. University of Victoria has over 1000 applications for housing that cannot be filled on campus.

Draft Strategy – December 2020 50 District of Oak Bay Secondary Suites Study

• The low vacancy rate in the region is hurting students – it is difficult to find housing and available options are expensive. This is a particular issue for students coming from out of town who are often shocked at the local housing situation. • There are issues with students not understanding the rights and responsibilities of tenants and landlords; through education with the institutions, they are becoming more aware and savvier over time, including pushing municipalities to enforce Building Code violations. • The institutions are aware of myths and perceptions of students as loud neighbours who party too much. There is recognition of the need to build better relationships between the schools and the community and to increase awareness of the contribution students make to the community, as well as everyone’s rights and responsibilities. There may be opportunities for the District to work with the schools to increase awareness and help build positive relationships. • Many parents of students are wary of secondary suites because they feel there are fewer recourses if problems arise compared to purpose-built rental. • Students want to live close to school and are not necessarily aware if a unit is in Oak Bay, Saanich, or Victoria (they see the area as a region rather than as separate municipalities).

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7 OPTIONS FOR CONSIDERATION As indicated in the research of comparison municipalities as well as from feedback from the community, there is no “one size fits all” solution to secondary suites. Every regulatory consideration has potential benefits and drawbacks, depending on one’s position on secondary suites. Based on the current policy direction of the Oak Bay Official Community Plan, this document provides a framework to permit secondary suites within the District. It is up to Council to determine where it wants to position the community on the regulatory spectrum – from removing all barriers to secondary suites to the complete regulation, registration and enforcement of existing and future suites. This section provides an overview of the various attributes that can impact the regulatory framework for secondary suites, as identified through the Study. This is followed by a sampling of ‘packaged’ options that sets out how secondary suites could be accommodated along the regulatory spectrum.

7.1 The Attributes of Secondary Suites

A comprehensive planning analysis of the array of regulatory attributes that impact secondary suites was undertaken to determine the various implications for permitting secondary suites. As introduced in previous sections of this document, and as shown in Table 9, these attributes can vary across the spectrum from lesser to more stringent regulations. Based on best practices and experience in other communities, the more difficult it is to legalize secondary suites, the less likely the uptake will be for existing unregulated suites. Finding the appropriate balance of regulatory levers will be a key to the District managing the effectiveness of its secondary suite process, while tackling the affordable housing crisis within the Capital Region.

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TABLE 9 – SECONDARY SUITE ATTRIBUTES ACROSS THE REGULATORY SPECTRUM

Regulatory Spectrum

Suite Type New and Existing Secondary Suites New Secondary Suites Only Existing Secondary Suites Only

Land Use All Single Family Homes RS1 - RS5 Zones Select Zones Select Neighbourhood Site Specific Zoning

Lot Size No Minimum Lot Size Minimum Lot Size 275 m2 Minimum Lot Size 558 m2

Unit Size No Restrictions 40% of SFD 40% of SFD or 150 m2 Whichever is Less

Owner Occupancy No Owner Occupancy Owner Occupancy

Dwelling Use Single Family Dwelling - With Boarding and Secondary Suite Single Family Dwelling - With Secondary Suite Only

Parking No Additional Parking 1 Parking Space for New / Exempt Parking for Existing 1 Parking Space for All

Enforcement No Enforcement Complaint Based District Initiated

Building Code No Code Compliance Health and Safety Full Building Code Compliance

Registration No Registration Voluntary Registration Mandatory Business Licensing

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7.2 Sample Scenarios for Regulating Secondary Suites

Based on the spectrum of attributes identified in section 7.1, a series of six sample scenarios have been identified in Table 10 (see next page) to help provide a scope of how suites could be regulated across the spectrum, with scenarios B and C representing a balance of the two ends of the spectrum. Scenario A represents the least regulated approach, allowing suites in all single family homes across the community, with minimal requirements for enforcement or registration, and nominal impacts to staffing and other resources. Scenario F represents the most restrictive approach for regulating secondary suites, where any potential suites would be required to undergo a site specific zoning amendment process and full enforcement may be required. This end of the spectrum also has significant implications for staffing and other resources.

As mentioned, scenarios B and C represent a balance within the spectrum based on background research, public engagement, and a variety of policy lenses including affordable housing, sustainability, and generational equity. Reflective of both community input and best practices found in other municipalities, each of these scenarios represent a range of the regulatory and enforcement environments, with the primary difference being that of a voluntary registration system where the District could track approved secondary suites.

There are undoubtedly other approaches that are either more lenient or more stringent, and there are also potential variations within each scenario. For example, each of the scenarios could apply to either new or existing secondary suites, or both. Scenarios E and F are unique in their program rollout, where they may apply to a select area of the community, or result in a site specific rezoning process. With these scenarios, the regulatory and enforcement program could also vary, reflecting the requirements set out in the other scenarios.

Table 10 can be read with consideration given to the following: • Scenarios A to F represent different points on a spectrum of regulation and enforcement, with Scenario A being the least restrictive and Scenario F being the most restrictive. • Bolded text indicates how a scenario varies from the scenario before it (eg. Scenario C varies from Scenario B where it establishes a maximum unit size of 40% of gross floor area. • A Notes section is provided at the end of Table 10, which provides additional information on some of the components contained in the scenarios.

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TABLE 10 – SELECT SCENARIOS FOR REGULATING SECONDARY SUITES

NEW SECONDARY SUITES

EXISTING SECONDARY SUITES

CATEGORY SCENARIO A SCENARIO B SCENARIO C SCENARIO D SCENARIO E SCENARIO F Zoning LAND USE LAND USE LAND USE LAND USE LAND USE (PILOT)6,7 LAND USE7 • Secondary suites • Secondary suites • Secondary suites • Secondary suites • Permitted in RS4 • Site specific permitted in all permitted in RS1 to permitted in RS1 to permitted in RS1 to and RS5 zones rezoning process single family homes RS5 zones RS5 zones RS5 zones and / or to permit existing • No min. lot size • 558 m2 min. lot size • 558 m2 min. lot size • 558 m2 min. lot size select area within and / or new • No unit size • No unit size • Max. unit size of 40% • Max. unit size of 40% the community secondary suites restrictions restrictions of gross floor area of gross floor area • See Scenarios A to • See Scenarios A to • Boarding and suites • Boarding not (GFA) (GFA) or 150 m2, D for possible D for possible permitted permitted where • Boarding not whichever is less options options suite present permitted where • Boarding not suite present permitted where suite present PARKING PARKING2 PARKING2 PARKING2 PARKING PARKING • No additional • One off street parking • One off street parking • One off street See Scenarios A to D See Scenarios A to D parking required space space parking space for possible options for possible options • Exempt secondary • Exempt secondary • No exemption for suites already in suites already in existing suites existence on the date existence on the date of adoption of the of adoption of the amended bylaw from amended bylaw from off street parking off street parking requirements requirements OWNER OCCUPANCY OWNER OCCUPANCY OWNER OCCUPANCY OWNER OCCUPANCY OWNER OCCUPANCY OWNER OCCUPANCY Not required Owner occupancy Owner occupancy Owner occupancy See Scenarios A to D See Scenarios A to D required in primary unit required in primary unit required in primary unit for possible options for possible options or secondary suite or secondary suite or secondary suite

Draft Strategy – December 2020 55 District of Oak Bay Secondary Suites Study

NEW SECONDARY SUITES

EXISTING SECONDARY SUITES

CATEGORY SCENARIO A SCENARIO B SCENARIO C SCENARIO D SCENARIO E SCENARIO F Enforcement Enforcement on a Enforcement on a Enforcement on a Enforcement of Code See Scenarios A to D See Scenarios A to D complaint basis, for complaint basis, for complaint basis, for and District regulations for possible options for possible options health and safety, all health and safety, all health and safety, all triggered through a Code requirements Code requirements Code requirements. District initiated program and / or a complaint basis 4 Registration No Registration No Registration Voluntary Registration3,4 Mandatory See Scenarios A to D See Scenarios A to D Business Licensing 4,5 for possible options for possible options Resource • No new resources • No new resources • Limited new Moderate to significant Moderate staff Significant additional 1 Implications required required resources required new resources required resources required to staff resource • Zoning Bylaw • Zoning Bylaw (approx. 0.5 FTE) for (approx. 1.0 – 2.0 FTE) manage select pilot implications (approx. revisions and public revisions and public registration system to (1) implement and program for a 1.0 – 2.0 FTE) to education to be education to be and public education manage business specified period. manage individual undertaken within undertaken within program) licensing, (2) bylaw Extends length of rezoning and public current staff current staff enforcement and (3) implementing suite hearing process for workload workload enhanced public program, which suites; with additional education programs impacts staffing resources required as Additional resources resources (bylaw, per option selected. required to enforce the communications). BC Building Code requirements for a Does not address comprehensive District- suites located in initiated enforcement other areas of the program. municipality.

Draft Strategy – December 2020 56 District of Oak Bay Secondary Suites Study

NEW SECONDARY SUITES

EXISTING SECONDARY SUITES

CATEGORY SCENARIO A SCENARIO B SCENARIO C SCENARIO D SCENARIO E SCENARIO F Notes 1 Secondary suite program to include a communications and public education campaign to promote voluntary compliance of secondary suites, including zoning regulations, health and safety improvements, and Building Code requirements for existing suites (eg. smoke detectors, fire separation, adequate egress). 2 Homeowners can apply for a parking variance if they are unable to comply with District bylaws and if they can show, for example, adequate on street parking, proximity to transit, preservation of trees. 3 A voluntary registration program enables homeowners to work toward a suite compliant with regulations, health and safety improvements and other Building Code requirements. 4 With any form of registration or licensing program, it is difficult to achieve 100% compliance. Similarly, full enforcement and strict regulation of suites leads to increased costs for homeowners, who may then choose not to notify that they have a suite. 5 Instituting a licensing program has significant start up costs, and at full participation may not generate revenue to cover staff and / or other necessary resources. All new construction of secondary suites would be required to register, as well as fully comply with zoning and Building Code requirements. 6 Existing secondary suites are generally located across the community, which may be challenging in determining where to establish a pilot study area. Anecdotally, interest has been expressed across the community to construct suites in new homes. 7 Limits ability to meet housing goals set out in the Official Community Plan or Regional Growth Strategy, and does not adequately increase inventory as projected by the Oak Bay Housing Needs Report.

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8 NEXT STEPS

The information, analysis and scenarios provided in this report are presented for discussion at this stage in the process, in order to obtain additional feedback from Council and the community.

Additional community consultation will take place in early 2021. Engagement will seek community input on the following:

• Community opinion on the attributes set out in Table 9, to determine degrees of acceptance on where attributes land on the spectrum, and whether other attributes are identified;

• Community feedback on possible scenarios for establishing a secondary suite regulatory program, utilizing sample scenarios provided in Table 10 as a basis to generate discussion.

Recognizing the existing safety protocols in place to address the current pandemic, community input will be gathered through an online platform, Bang the Table, to gather responses on the above noted items. A hard copy of an updated newsletter and survey will also be distributed throughout the community (eg. through the local newspaper) as an alternate means for gathering community input.

Feedback received from Council and the community will be considered in combination with municipal bylaw review and planning analysis, in order to refine the staff recommended policy and regulatory approach - including potential financial, legal and staff resource impacts. This recommended approach will be presented as part of the draft Final Strategy, anticipated for consideration by Council in Spring 2021. Council will determine the most appropriate path forward at this time.

Draft Strategy – December 2020 58